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The Reserve Bank of New Zealand (RBNZ) is out with a note on ‘unconventional monetary policy’, or policy measures since the financial crisis of 2008-09.

Key highlights

RBNZ sees significant room to ease in “conventional” ways.

Does not project a significant decrease in the overnight cash rate.

The RBNZ believes conventional policy remains effective.

But, the OCR could be lowered into ‘modestly negative’ territory.

Specific targeting of term lending facilities could also be introduced.